Wages of Failure

1272 WordsJun 14th, 20146 Pages

In the article, “Wages of Failure: The Ethics of Executive Compensation” General Global is faced with a complex decision after new CEO, Janice White, requests to be paid based on performance. Her predecessor, former CEO Bill Hogson, seemingly underperformed for the company for nearly a year and stepped down with a huge exit package totaling $100 million (two years salary with bonuses). This caused an outcry by the press for less greed among America’s corporate executives. Janice White, formerly CFO of General Global, feels that by changing the companies pay policy to pay the CEO based on performance would increase stakeholder faith in the corporation. By being paid based on merit rather than by a market based industry standard would…show more content…

This would allow a smaller exit package to still seem lucrative when compared to set base salary, ensuring that poorly performing CEOs would likely take the exit package rather than choosing to stay at the company causing further demise of its worth. In order to ensure that the salary stays competitive with the industry standards the pay scale would have no cap, but would be based on quarterly earnings to ensure that well performing CEOs at well preforming companies are compensated equally to their similar industry peers. Much like other employees within the company, the CEO should expect increased in pay based on merit. Rawl’s theory of distributive justice would back up this notion. In his theory, everyone would have unbiased equal opportunity for success, be fairly compensated for their efforts, and their rewards would also benefit those least advantaged. If the CEO’s salary is higher when company performance increases, the least advantaged within stakeholders within the company (the lowest level employees) will benefit as well by increased job security and future pay.
Another option to look at for General Global would be to deny Janice whites request altogether and continue with their current policy of basing CEO pay on industry standards. This would ensure that company does not undergo a drastic change in policy, possibly avoiding a backlash from stockholders who

the world are treated differently, because of their ability to do things and different body parts. Today, one of the many things that we are dealing with in the working world is that men and women at the same level positions are being paid different wages, monies earned at a rate for work done. How can that be? It should not; men and women have the same ability to do the same types of work, as well as, hold management positions. Therefore, women should be paid at the same rate as men while working at…

are moving back home with their parents. This has been the case in the past and now it’s no different. There are several reasons for why young adults have returned home after leaving. In a presentation by Dr. Brooks she clearly states that children failure to launch because the lack of social and emotional development which causes them to dependent on their parents to help meet their needs (2014). According to Dunn (2012), as the economy struggles, it becomes more difficult for young people to gain…

The Debate on Wage
The debate on wage is something that has become known as what I could call a very “fluent” topic among voices of people that live in the United States today. People that walk and live within the borders of this beautiful country are crying out for help from any state or government official who is willing to lend an ear and listen to what is really happening behind these closed doors.
How is a family supposed to survive off a minimum wage salary and be able to support the activities…

What are the Effects of a Minimum Wage Law?
A minimum wage is the lowest amount of money per hour that the government of the country assigns employers to pay their employees. The minimum wage is based on an idea that the employers have a responsibility for their employees to live in a reasonable standard of living. The minimum wage laws have directly effect to most industries because of the potential of decreasing their budget. As a result, the minimum wage is still an issue that people research…

The following literature review gives a thorough account of the current research into the determination of wages. It was crucial for this project to study the current body of literature on this topic in order to decide on which approach was best to take. Sapsford et al. (1993) claim that “at the simplest level of analysis, wages, viewed as the price of labour, are seen as being straightforwardly determined by the intersection of labour demand and supply curves in the market for labour.” (Sapsford…

The federally mandated minimum wage has been a divisive political issue in American politics since it first came into effect in 1938 under the Presidency of Franklin D. Roosevelt. FDR advocated for the minimum wage with the argument that “all but the hopelessly reactionary will agree that to conserve our primary resources of manpower, government must have some control over maximum hours, minimum wages, the evil of child labor, and the exploitation of unorganized labor” (Greene 2013). This idea led…

is to decrease non-wage benefits. For instance, medical care, paid sick leave, fitness, tuition for children, safe working condition, and paid vacation time. Although, most of non-wage benefits are not required, employees would be happier and safer with their working environment. For huge businesses, non-wage benefits could cost a significant amount of money; for example, fitness requires an area for equipment, electricity, and staffs. As a result, to decrease or limit non-wage benefits would reduce…

putting on a performance of Cats. Electricians, trombonists, choreographers, dressers, janitors, nurses, vocal coaches, accountants, stagehands, payroll supervisors, ushers, lighting technicians, ticket sellers—the list goes on. Consider the array of wages paid to these employees. Why does the swing get paid more than other performers? Why does the performer get paid more (or less) than the trombonist? How are these decisions made, and who is involved in making them? Whether the pay is our own or someone…

In the article, “Wages of Failure: The Ethics of Executive Compensation” General Global is faced with a complex decision after new CEO, Janice White, requests to be paid based on performance. Her predecessor, former CEO Bill Hogson, seemingly underperformed for the company for nearly a year and stepped down with a huge exit package totaling $100 million (two years salary with bonuses). This caused an outcry by the press for less greed among America’s corporate executives. Janice White, formerly…

Minimum wage affects everyone. The current minimum wage is at $7.25 and President Obama announced that he wished to see a change in the minimum wage, he wants to raise the hourly wage to $10.10. A rise in the income of those who are employed will also raise the cost of hiring unskilled labor and can potentially reduce the number of people hired by businesses. Also, if minimum wage is raised then the price of the products that the companies are making might increase which will continue the cycle of…